Friday was a sideways consolidation day following a large rally day on Thursday. A large up day which is then followed by a consolidation day is then normally followed by another large up day. As such we should see a large rally day on Monday. Failure to do so is bearish, and can attract sellers.
Key price zone for Monday will be Friday's trading range, 6808-6915
-- Trading inside the range implies another choppy sideways consolidation day.
-- Trading above the range is bullish, an indication the market is going to trend up. The next resistance is 6950, a strong resistance, the 20-dma on the daily chart. A break above should trigger a fast short-covering rally , next resistance is 7100.
-- Trading below Friday low is going to attract selling that could quickly tank the market.
-- Opening outside Friday trading range implies NQ is in a breakout mode, a trending move in the direction of the breakout.
